Sky TV to buy Vodafone NZ for $2.4 billion

NEW DELHI:UK-based telecom firm Vodafone said that its New Zealand unit is merging with the country's biggest pay television provider Sky Network Ltd in a NZD 3.4 billion ($2.42 billion or roughly Rs. 16,140 crores).

Under the deal, Sky will acquire all of the shares in Vodafone NZ for that sum in cash and shares, giving Vodafone Group a 51 percent stake in the combined group and a cash consideration of NZD 1.25 billion, to be funded through new debt.

Vodafone NZ has more than 2.35 million mobile accounts, while Sky has 830,000 subscribers.

The head of Vodafone's New Zealand operations Russell Stanners will be the chief executive of the new company.